A Pestle Analysis Of The United Kingdom Economics Essay

To begin with, I would like to address the notion of PESTLE analysis. For those of you who do not know, the letters in its name stand for analysis of all the Political, Economic, Social, Technologic, Legal, and Environmental factors which influence the way businesses in the country function. So, let’s analyse these factors in the example of one country – the United Kingdom – and see what things have a favourable effect while which ones prevent businesses from proper development. Political The good things about the United Kingdom are that it is quite stable and has the government which continually takes measures to improve the working conditions for workers across the state. However, businesses might face troubles with certain corruption in different areas. However, this can be easily compensated by the effective regulatory measures. Economic Even though at the moment country’s GDP is experiencing the certain decline, it is still one of the highest ones in the world. The good thing is that the economy of the United Kingdom allows different businesses, of all sizes, enter the market and be profitable. The only problem only is that the state’s authorities are spending so much money on the migrants and free services for the population that business development does not get all the funds they need. Social There are so many migrants in the country that companies can easily get cheaper workforce, unlike the states where the natives work. Another great factor is that people have higher standards of living than elsewhere in the world and access to various free public services. However, one should bear in mind that a lot of people have to say no to higher education given its cost. As a result, the population with higher education is few in number. Technological According to the latest trend, the United Kingdom welcomes innovation. Besides, they are known to have lots of IT specialists who contribute to this market a lot. As a result of a great number of a growing number of IT specialists, there is the great competition on the market, and these professionals strive to demonstrate better results. This leads to the remarkable development of the market. Nevertheless, this country is known for their desire to save money; so they tend to hire employees from less prosperous countries to cut expenses. Thus, sometimes the quality of their services might not be satisfactory. Legal Citizens of the United Kingdom work a lot. According to the customary laws, they are supposed to work more than 40 hours unlike the legislation of other countries. That is why this law can be quite a tiring practice. Meanwhile, employees are allowed to work extra hours and get paid for them as a result. However, they have favourable conditions of maternity and paternity leaves which keep the employees happy and satisfied. Besides, there is a notion of minimum wage and all kinds of benefits for the working class. Environmental Finally, the last category I want you to look into is environmental factors. The ecology in the UK is strictly governed, and those polluting the environment have to pay high fees for it. Thus, the situation with it is much better than in many other European countries. Meanwhile, the food standards are really high, and there are special committees that monitor and control the situation with them. All in all, one can see that the UK is a great place to run the business. Of course, there are factors which might stand in the way of company’s success. But most things stimulate its growth and help its development. PESTLE analysis can be a great tool for many business people and economists, so if you are not using it yet, it is high time you learned it.